Threat of a second drop in home prices could push more underwater homeowners to walk

TRD MIAMI /
Nov.November 16, 2009 03:07 PM

Stabilizing home prices haven’t yet done much to help those who bought in areas that fell victim to the largest of the boom-and-bust waves, CNBC’s Diana Olick wrote today. Many of these buyers — especially in Florida, Arizona, Nevada and California — purchased homes at peak prices and are now the furthest underwater on their mortgages. For those who can’t afford to keep making payments, or who don’t feel it’s worth it do so on a house whose value may never return, biding time before the bank moves to foreclose or simply walking away from the property is beginning to make sense. Olick said she is concerned that the emerging signs of stabilization in home prices may not be sustainable after the government stops artificially propping up the market with stimulus funding. If that’s true, a second dip in home prices could force underwater homeowners even deeper into debt. [CNBC]


Related Articles

arrow_forward_ios
Placeholder image

U.S. existing home prices up; climate improves as distressed sales wane: VIDEO

Placeholder image

Miami Beach luxury market going strong

Placeholder image

U.S. housing prices haven’t hit bottom and foreclosures will hamper economy for five years, experts say

Placeholder image

Shiller report doesn’t reflect the truth of the housing market: analyst

Placeholder image

KB Homes CEO optimistic about housing market recovery

Placeholder image

The Donald blasts the Times over anti-Trump lawsuit coverage

Placeholder image

More browsers coming back to real estate sites

Placeholder image

Best and worst places to buy a home

arrow_forward_ios
Loading...